Peraton Corp.'s revenue and EBITDA growth, as well as gross debt reduction, lag the levels we envisioned at the time of its acquisition of Perspecta Inc. in May 2021, contributing to expected fiscal 2022 leverage in excess of 7.5x. We revised the outlook to negative from stable and affirmed our 'B+' corporate credit rating on Peraton. The negative outlook reflects our view of the company's continued high leverage, which we estimate will be about 8x in fiscal 2022, along with the potential risk of leverage staying elevated above 7.5x for the next 12 months should its EBITDA scale and debt repayment fall short of levels needed to improve leverage. Excluding the Next Generation Enterprise Network(NGEN) contract contribution from its 2021
